GLC company pattern in Malaysia Syukur Negara Masih Aman All company lost money - Do you ever wonder why all GLC lost money? MBSB, Media, Pos, Felda, MSM, - their graph is exactly the same... No matter what business we in, we lost money!
PARIS: Perancis menutup kedai, restoran dan kemudahan hiburan, bermula hari ini, dengan 67 juta penduduknya diminta tidak keluar rumah sebagai langkah membantu memerangi penularan pantas COVID-19.
Wabak itu merebak dengan cepat sehingga menyaksikan bilangan kes di negara ini berganda dalam tempoh 72 jam.
Most are political people with little knowledge of business. Mostly are for job creation. In Malaysia you need to know who to lick to be on top, credential is secondary.
All company lost money - Do you ever wonder why all GLC lost money? MBSB, Media, Pos, Felda, MSM, - their graph is exactly the same... No matter what business we in, we lost money!
Global sugar market shortage presents opportunity for MSM MIDF Research said the anticipated supply tightness of sugar in 2020, which is mainly driven by lower global sugar production, especially from India, has lifted the commodity’s global price. MIDF Research said the anticipated supply tightness of sugar in 2020, which is mainly driven by lower global sugar production, especially from India, has lifted the commodity’s global price. By NST Business - February 5, 2020 @ 12:15pm KUALA LUMPUR: The global sugar market is facing its largest supply shortage in five years, allowing MSM Holdings Bhd to bolster its exports.
MIDF Research said the anticipated supply tightness of sugar in 2020, which is mainly driven by lower global sugar production, especially from India, has lifted the commodity’s global price.
This is evident from the increase in average raw Sugar No.11 Futures (NY11) to above US$13 per pound in the beginning of 2020 as compared to the range of between US$10 and US$12per pound in second half of 2019.
It said currently, the NY11 price is trading at about two-year highs and the market expects prices to stay between US$14 and US$15 per pound until end of the second quarter of 2020.
“Premised on this, we expect MSM’s profit margin to be improving gradually through higher average selling price (ASP) of its refined sugars as white-sugar prices have risen further than raw-sugar prices in the rally,” it said.
MIDF said currently, the group is in the midst of negotiating a new wholesale business model that could fetch a higher pricing for its refined sugars which is expected to have a gain of RM25 million a year.
“We also understand that the Malaysian government has not been issuing any import permit (AP). We view that the current market price of above US$13 per pound would discourage manufacturers to procure directly from abroad.
“Thus, we opine that this phenomenon could increase MSM’s bargaining power in the domestic market where it derives approximately 90 per cent of its revenue through higher pricing and sales volume,” it said.
MIDF said the recovery of the global raw sugar price amidst a global sugar deficit has given the group a breather as both the lower sugar stock levels at key markets and that the current premium white sugar prices have over raw sugar price are expected to bode well with the group.
“As a result, we believe that the group should be able to capitalise on this opportunity to improve its earnings prospects through higher ASP of its refined sugar and sales volume.
“Coupled with no sight of new AP issued to local manufacturers and increasing global raw sugar prices, this could increase the bargaining power of the group to negotiate a better pricing in its home market.
“This is attributable to the economies of scale and operational capabilities of the group that could provide the local manufacturers to obtain refined sugars at lower cost than directly procure from the global raw sugar market at current prices.
“However, we opine that the global raw sugar price would remain stable at this juncture and is highly dependent on the Indian inventory level which is still in surplus from previous two high production season and the relative prices of ethanol in Brazil,” it said.
MIDF has upgraded its recommendation on MSM to “neutral” from previously “sell” with a target price of 81 sen from 70 sen previously.
Sugar stocks continued their winning run for second straight trading session after the media reported that sugar mills have ramped up production of hand sanitisers to cater its rising demand following the coronavirus outbreak. This could boost revenue of sugar companies.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tokok88
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Posted by tokok88 > 2020-03-03 17:10 | Report Abuse
Bank Negara lowers OPR by 25bps to 2.5%... Lower financial cost for MSM